Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings, saw total compensation of $36.4 million in 2020, driven by nearly $18 million in stock awards, according to a company SEC filing.
A spokesperson added: ““The annual run-rate pay for Mr. Del Rio was approximately $12.8 million in 2020. As part of total compensation, he received modified prior year awards predominantly related to the U.S. government’s decision to rescind travel to Cuba, business impacts from COVID-19, and one-time payments related to his previous and new extended employment agreement. We believe these changes were in the best interests of the Company and secured Mr. Del Rio’s continued invaluable expertise and critical industry relationships to drive our recovery from COVID-19. In responding to the pandemic, our management team took quick decisive action to reduce costs, conserve cash, raise capital and extend debt maturities and amortization, and remain focused on executing our roadmap to a healthy, safe relaunch.”
Norwegian said its named executive officers (in the table below) did receive pay cuts of 20 percent beginning March 30, 2020 through an indeterminate future time.
“During 2020, we paid in the case of our President and Chief Executive Officer, an inducement bonus, and retention bonuses to our other named executive officers (NEO) that in each case require continued employment through to December 31, 2021. If an NEO terminates employment for any reason other than a qualifying termination, 100% of the inducement or retention bonus must be repaid,” the company said in its SEC filing.
The company also noted that stock awards cover items granted in March 2018 and March 2019 that became eligible for vesting pursuant to modifications of the original awards, computed as of the modification dates.
Part of Del Rio’s other compensation included $10,269,000. The company said that it the payment represents “the cash payment owed to our President and Chief Executive Officer under his previous employment agreement, as amended in August 2017, for a payment that is equal to 2.25 times the sum of: (1) his annualized base salary in effect as of August 2017 ($1.5 million) and (2) his target annual cash performance incentive amount at the rate in effect as of August 2017 (or $3.0 million) and (3) $64,000, which represents the value of certain benefits. Because of this payment, Mr. Del Rio is not entitled to any cash severance benefits under his new employment agreement other than a pro-rata bonus payment for the year of termination and continued payment for medical and dental coverage.”